d.a. davidson 6th aerospace industrials conference davidson conference.pdf · 6th annual aerospace...
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www.ii‐vi.com NASDAQ: IIVI
D.A. Davidson6th Annual Aerospace & Industrials Conference
December 11, 2014Boston
Our Technologies for Tomorrow’s Innovations
A Global Leader in Engineered Materials& Opto‐Electronic Components
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www.ii-vi.com I NASDAQ: IIVI2
Matters discussed in this presentation may contain forward-looking statements that are subject to risks and uncertainties. These risks and uncertainties could cause the forward-looking statements and II-VI Incorporated’s (the Company’s) actual results to differ materially. In evaluating these forward-looking statements, you should specifically consider the “Risk Factors” in the Company’s most recent Form 10-K and Form 10-Q. Forward-looking statements are only estimates and actual events or results may differ materially.
II-VI Incorporated disclaims any obligation to update information contained in any forward-looking statement.
This presentation contains certain non-GAAP financial measures. Reconciliations of non-GAAP financial measures to their most comparable GAAP financial measures are presented at the end of this presentation.
Safe Harbor Statement
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Sc21
Our Core – Material Excellence
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Global Leader in Engineered Materials
Headquartered in Saxonburg, PA
~ 7,000 Employees in 14 Countries
FY14: $683M Revenue, 5.6% ROS
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4 consecutive decades of profitability and counting
Fiscal Year Revenues
$M
56% 44%
31%
37%
32%
46%
22%
20%
4% 4%4%
2005
$187 $224 $255$310 $280
$333
$487 $516 $551
$683
2006 2007 2008 2009 2010 2011 2012 2013 2014
About II‐VI
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Organization
Photonics Performance ProductsLaser Solutions
M&A / Integration
Tech Management
Trade Compliance
Operation Metrics
Quality
SCM
Legal
StrategicResources
CorporateG&A
R&DNPI
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RevenueTAMShare
FY14 FY13$254M $218M
$885M29%
Laser Solutions Segment
Leading merchant supplier of CO2, Fiber, and Direct Diode industrial laser components
Leading supplier of CO2 optics for an install base of >70,000 high power lasers
First to service EUV Lithography CVD Diamond optics demand
― Laser Optics― Cutting Heads― Semiconductor Laser Chips
― Ultra‐hard Material Processing― Laser Source Solutions
Focused on expanding our fiber and direct diode laser footprint as markets grow
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Laser Solutions Segment
Vertical Cavity Surface Emitting Laser (VCSEL)
CO2 Laser Optics
Laser Cutting Heads
Laser Diode Bar
Green Laser Diode Module
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RevenueTAMShare
FY14 FY13$217M $141M
$2.0B11%
Photonics Segment
Worldwide supplier of cutting edge amplification, pump, and transmission products for optical communication networks
Service both intercontinental (undersea) and transcontinental (terrestrial) applications
Leverage vertical integration synergies to enable a cost structure for market penetration and growth
― Precision Optics― 980nm Pumps― Erbium Doped Fiber Amplifiers
― Optical Switches― Optical Coatings and Filters
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Source: Worldbank.org ‐ Based on data from the World Telecommunication/ICT Indicators database
Worldwide Fiber Optic Penetration
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Arrayed Amplifiers
Dual Laser Chip 980nm Pumps
40G & 100G Quad Small Form‐factor Pluggable (QSFP) Transceivers
High Performance Optical Coatings and Filters
Optical Switches
Photonics Segment
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RevenueTAMShare
FY14 FY13$213M $192M
$2.1B10%
Focus on strategic markets where II‐VI material expertise and technology enables growth and new functionality― Free Standing Diamond― Precision Optical Systems― High Value Material Reclamation
― Reaction Bonded SiC Tools― Thermal Management
Target military platforms and applications with growth potential
Identify emerging markets early and enable the underpinning materials and technology
Performance Products Segment
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Water Cooled Silicon Carbide Optics
Energy Harvesting Pipe Strap
CVD Polycrystalline Diamond
Large Panel Sapphire Windows
Opto‐mechanical Assemblies
Performance Products Segment
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Gross Margin
EBITDA
Operating Margin
FY15 FY16
35% ‐38% 37% ‐40%
15% ‐18% 19% ‐21%
7% ‐10% 9% ‐12%
ExpectationsMargin Performance
Profitability and Expectations
Exiting FY15 200 BPS > Q3 FY14
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Cash and Liquidity
Cash and Equivalents
Cash Flow from OperationsLong‐Term Debt
(Including current portion)
Shareholders' Equity
FY13$185M
$108M $114M
$636M
FY14 $175M
$95M $241M
$675M
Cash and Liquidity
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Company Position
Strong Cash Position
Positive Profit Outlook
Leading Market Positions
Diverse End Markets
Global Manufacturing Footprint
Growth via Organic and Acquisitions
Ongoing $50M Stock Buyback Program
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www.ii-vi.com I NASDAQ: IIVI16